Merger Testing
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$8,000,000
Annual Gross Revenue
37.50%
EBITDA Margin
$21M - $30M
Valuation Range
75%
Economic Profit%
4
No. of Equity Partners
$267/hr
Avg Client Rate ($/hr)
20
Total Employees
50%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • The firm generates $8.0 million of gross revenue, which is the most material top-line strength in the data set.
  • Revenue per partner is $2.0 million, indicating a high level of partner productivity relative to the firm’s current ownership base.
  • The firm reports 30,000 billable hours, providing a meaningful volume of chargeable work supporting the revenue base.
  • EBOC is 50%, which indicates that half of gross revenue remains after operating costs and is a clear margin metric for valuation analysis.
  • The firm has 4 partners and 20 staff, a compact operating structure that can be attractive from a buyer’s integration and governance perspective.
Weaknesses
  • EBOC is 50%, which leaves only moderate earnings conversion and can cap valuation relative to higher-margin firms.
  • Revenue per partner is $2,000,000 across just 4 partners, creating meaningful key-person and partner-dependency risk for a buyer.
  • The firm has only 20 staff against 30,000 billable hours, indicating a relatively small operating platform that may limit scale and capacity.
  • Partner ages are 30, suggesting a younger leadership group with limited tenure visibility for succession assessment from a buyer’s perspective.
Opportunities
  • Increase revenue per partner from the current $2.0M level by improving partner leverage and delegating more work to staff, given 4 partners and 20 staff.
  • Expand billable hours beyond the current 30,000 to support top-line growth without adding proportionate partner count, leveraging the existing staffing base.
  • Preserve and potentially improve the 50% EBOC margin through disciplined pricing and workload mix management, as margin is already a strong valuation support.
  • Build scale by increasing firm size and depth under the current partner group, since the firm’s 4-partner structure suggests room to spread leadership and client delivery across more personnel.
Threats
  • The firm’s EBOC margin of 50% is solid but still leaves meaningful earnings sensitivity if billing realization or overhead efficiency weakens, which can affect valuation durability.
  • With only 4 partners and $2.0 million of revenue per partner, the business is relatively concentrated at the partner level, increasing key-person and succession execution risk if one or more partners reduce involvement.
  • The 30,000 billable hours supported by 20 staff imply a modest staffing base for an $8.0 million practice, so capacity constraints or turnover could quickly pressure delivery and growth.
  • The partner age data shows 30, but the JSON does not indicate a broader succession pipeline, so continuity risk may remain if the current partner group is not deep enough to absorb future transitions.
Enhance Profitability

May drive premium valuation, strong cash flow, and high investor demand while supporting scalable growth and resilience.

37.50% EBITDA margin
Operational Efficiency

You are doing a great job on leverage, continue to look for opportunities to push work down to the appropriate levels, and remember that leverage is your biggest pathway to high levels of profitability

Leverage ratio 5:1
Revenue Acceleration

Without a defined growth rate, growth may be accelerated by adding advisory services, pursuing tuck-in mergers, or onboarding a lateral partner with an existing book of business.

+15–25% revenue growth
Risk Mitigation

May enhance operational capacity, diversify expertise, and strengthen continuity, but can introduce complexity in decision-making and profit sharing.
May support continuity, smoother succession planning, stronger long-term client retention, and greater capacity to adapt to growth and innovation initiatives.

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This preliminary valuation range is for discussion purposes only, based on unverified information, and is highly sensitive to assumptions. It does not constitute a formal valuation or transaction guidance and should not be relied upon by any party for decision-making purposes.